Shiba Inu (SHIB) recently faced a major token dump of epic proportions, with a whopping 800 billion SHIB tokens being thrown into the market. But what caused this massive sell-off and what does it mean for the future of Shiba Inu?
This major token offloading extravaganza went down on Binance alone, with traders ditching their SHIB for USDT. The Buying Selling View indicator revealed that this frenzy took place from 8:00 a.m. to 12:00 p.m. UTC.
To understand the degree of the situation, let’s delve into the factors behind this recent market movement and explore the potential consequences for both short-term traders and long-term SHIB investors.
What SHIB Offloading Means For Short-Term Traders
When a massive token offloading event like the recent SHIB dump occurs, it creates a ripple effect that can have significant implications, especially for short-term sellers aiming for quick gains.
Token dumps often result in increased market volatility, causing sudden price drops and erratic fluctuations. For short-term traders, this can be both a bane and boon. On one hand, volatility presents opportunities for quick profits if they time their trades well. On the other hand, it also raises the risk of unexpected losses if the market turns against their positions.
Massive offloading events tend to put downward pressure on the token’s price. The increased supply flooding the market can lead to price depreciation, which may discourage short-term traders from entering or maintaining their positions. This, in turn, can impact the overall trading sentiment and make it harder for traders to secure favorable gains.
As per CoinGecko, the price of SHIB currently stands at $0.00000743, reflecting a decline of 3.4% over the past 24 hours. However, despite this recent dip, SHIB has managed to rally by 2.8% over the course of the past seven days.
SHIB market cap currently at $4.3 billion. Chart: TradingView.com
SHIB Ecosystem Token’s Impressive Rally
Meanwhile, amidst all the action, Shiba Inu’s ecosystem token, Bone, experienced an astounding rally of over 25% in the past 14 days, delivering substantial returns to investors in the third quarter of 2023. This surge propelled the cryptocurrency’s price to surpass the $1 mark. However, after reaching a peak of $1.09, the price of Bone entered a correction phase and has been struggling to regain momentum on the charts.
it’s time for $2-$3 serious pep talk pic.twitter.com/1MQgUHnXCw
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) July 3, 2023
LucieSHIB, a marketing specialist for Shiba Inu, recently took to Twitter and expressed optimism by stating that it’s time for Bone’s price to target the $2 to $3 range. While it remains to be seen whether Lucie’s prediction will come to fruition, only time will provide the answer to this intriguing question.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Corporate Finance Institute